India has launched a ₹1,000 crore venture capital fund dedicated to supporting the country’s rapidly growing space-tech start-up ecosystem, marking a transformative step in its ambition to become a major global player in the space sector.

This initiative, approved by the Union Cabinet and managed by SIDBI Venture Capital Limited, is overseen by the Indian National Space Promotion and Authorisation Center (IN-SPACe), which serves as the bridge between government agencies like ISRO and private enterprises.

The fund is designed to empower start-ups working across critical domains such as satellite development, propulsion technologies, launch vehicles, space-based data analytics, reusable space tech, earth observation, and deep-space exploration.

It will be deployed over five years, with annual investments ranging from ₹150 crore to ₹250 crore, and individual start-up investments between ₹10 crore and ₹60 crore, depending on the company’s stage and impact potential. Early-stage companies can expect support for building nanosatellites, while growth-stage firms developing reusable rockets and advanced payloads are also eligible for higher funding.

The government’s approach goes beyond financial backing. By opening up ISRO’s launch pads, testing facilities, and satellite data to private firms, and implementing proactive legislative reforms, India is actively lowering entry barriers for entrepreneurs and accelerating their path to market. IN-SPACe plays a pivotal role in ensuring that regulatory processes are streamlined, fostering a collaborative environment where innovation can thrive without bureaucratic delays.

India’s space-tech landscape is already vibrant, with over 190 start-ups—notably in Bengaluru—working on cutting-edge projects. Companies like Agnikul Cosmos (adaptable launch vehicles), Skyroot Aerospace (India’s first private rocket), and Pixxel (earth imaging satellites) are gaining international recognition and are poised to benefit significantly from this fund. The initiative aims to catalyse further momentum by promoting manufacturing, exports, and R&D, and by attracting both domestic and global investors.

Strategically, this fund is part of India’s broader objective to expand its space economy from $8.4 billion to $44 billion by 2033. By nurturing indigenous innovation and reducing reliance on foreign technology, the government is positioning Indian start-ups to lead advancements in areas such as climate change monitoring, satellite internet, and interplanetary exploration.

The synergy between public research institutions and agile private start-ups is expected to yield breakthroughs that are faster, more cost-effective, and globally competitive. This public-private partnership model, supported by robust policy and funding, signals India’s intent not just to participate in the global space race but to shape its future trajectory.

The ₹1,000 crore venture capital fund is a landmark move that combines financial muscle, regulatory reform, and infrastructure access to transform India’s space-tech sector. It underscores the country’s commitment to innovation, commercialisation, and international leadership in space, turning potential into performance and ensuring Indian start-ups are ready to reach new frontiers.

Agencies